Sigma Pharmaceuticals chief executive Mark Hooper says the wholesaler is pursuing opportunities to provide healthcare outside of retail chemists, such as in patients' homes.
In a bid to spur Sigma's repositioning to take advantage of an ageing population and a shift in how chronic disease will be treated in future, the Melbourne-based company will propose changing its name to Sigma Healthcare. The new name will be unveiled on Wednesday on the Gold Coast at the annual retail conference for Amcal and Guardian chemists, two of the brands Sigma exclusively supplies.
"In terms of the patient journey, at the moment we're focused very much at the pharmacy piece, but we think there's opportunities to provide better support for patients once they move away from the pharmacy space," Mr Hooper said.
Wholesalers like Sigma, and its listed rival Australian Pharmaceutical Industries, derive the bulk of their revenue from a government-regulated 7 per cent commission on the value of prescription drugs distributed to retail chemists. This revenue source has been under pressure due to government initiatives designed to contain the Pharmaceutical Benefits Scheme budget.
In an effort to boost business in its retail network, Sigma has been working with the brands to design and deliver patients services like diabetes management and kidney tests. More broadly, pharmacists are trying to push into areas of health delivery like giving vaccinations, often the domain of general practitioners, to encourage customer visits. Improved foot traffic has the potential to boost sales of other over-the-counter medicines and other products, which Sigma also supplies.
Mr Hooper said the initiatives have worked. "There's a direct benefit to the pharmacy in terms of the amount of patronage they get on that disease state and it also makes customers more loyal to that store and brand as well."
Sigma shares are up 0.4 per cent this morning at $1.17.
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